Circle posted a $48 million profit in the second quarter, bouncing back from losses a year earlier. Revenue climbed 7% to $701 million as USDC transaction volume exploded 151% to $14.8 trillion, demonstrating the stablecoin is moving faster through the ecosystem even as the broader crypto market cooled.
The gains came despite headwinds. Reserve income, which funds most of Circle's earnings, rose just 5% to $668 million. Yields on the assets backing USDC fell 66 basis points to 3.5%, a drag on profitability that the company offset by expanding USDC circulation 25% on average through the quarter.
USDC supply itself reached $73.3 billion by quarter-end, up 19% year-over-year. The real story sat in velocity, though. Circle minted $83 billion of new stablecoins and redeemed $87 billion, showing massive throughput. Wallets holding more than $10 in USDC jumped 24% to 7 million, while the amount held directly on Circle's platform more than doubled to $12.4 billion.
Arc launch sets stage for institutional expansion
Circle plans to launch Arc, its institutional blockchain network, on September 16. The company has already signed up more than 100 participants including BlackRock and BNY Mellon. Arc sits at the center of Circle's bet that traditional finance will move onto blockchain rails. The Payments Network connected to Arc enrolled 175 financial institutions and moved $14.7 billion in annualized volume by quarter-end, up 76% from the previous period.
USDC's market share ticked down slightly to 27% of the fiat-backed stablecoin market, losing 66 basis points to competitors. But the absolute growth in transaction volume and the expansion of institutional adoption suggest Circle is winning on throughput and infrastructure rather than pure supply dominance.
This article is informational only and does not constitute financial advice. Crypto markets remain volatile and speculative.
